Stock Appreciation Rights

Overview

Stock Appreciation Rights (SAR) offer an alternative to traditional ESOPs, allowing companies to reward employees with the financial benefits of equity appreciation without actually issuing shares. This is particularly valuable when founders want to incentivize employees while minimizing dilution. We design and implement comprehensive SAR schemes including grant structures, appreciation calculation methodologies, vesting schedules, payment mechanisms (cash or shares), and complete documentation. Our service covers drafting SAR policies, grant agreements, board resolutions, and establishing proper accounting treatment. SAR schemes are ideal for mature startups, companies approaching IPO, or businesses wanting flexibility in employee incentives. We ensure your SAR structure is compliant with accounting standards, tax regulations, and employment laws while creating meaningful incentives that align employee interests with company growth.